Experian x Cifas - Brits Warned Over New Fraud Threats Ahead of Christmas Period
By Dominic Sow · 18 November 2025
Global data and technology company, Experian, and leading fraud prevention service, Cifas, today publish a new report which reveals a 9% rise in identify fraud, signalling the significant scale of fraud facing UK businesses as the festive season approaches.
‘Unwrapping fraud: helping you to prepare for the festive season’ brings together expertise and findings from two of the UK’s leading fraud prevention organisations and reveals the growing trends in the fraud space during the upcoming peak shopping period. UK households spend more than £3,000 in December, nearly a third more (29%) than in a typical month,* as people celebrate Christmas.
It also highlights the new tactics criminals are deploying to exploit people and their personal information, and the steps businesses can take to protect themselves and their customers from new threats.
The report reveals:
- Identity fraud - when someone’s personal information is used without their consent to apply for financial products, such as credit cards and loans - has risen by 9.2% in the last three years according to new Experian analysis, with synthetic fraud/AI generated identities now making up 42% of all cases
- Over the last three years, card fraud rates spike in November and December, indicating higher levels of fraud taking place in the festive period
- Potentially fraudulent savings account openings rose by 53% over the same period, according to Experian, with much of it driven by AI generated identities as criminals use the account to house stolen or laundered money
- Cifas members recorded more than 217,000 fraudulent cases to the National Fraud Database in the first six months of 2025, its highest ever recorded figure. It is estimated that identity fraud costs the UK economy £1.8 billion a year
The rise in fraud is being fuelled by advances in AI technology, which allow criminals to rapidly generate synthetic identities using a mix of real and fake information. This makes it easier to launch large-scale attacks on businesses and produce convincing fake documents, such as passports, making fraudulent applications harder to detect. Previous Experian research has found that more than a third of UK businesses have been targeted by AI-related fraud in the first three months of 2025.
The report also identifies the fraud threats which are becoming increasingly prominent and what both businesses and consumers should be aware of and how they can protect themselves. The ‘eight frauds of Christmas’ includes:
- AI scams
- Identity fraud
- Account takeover
- Misuse of facility
- Investment scams
- Sim-swap fraud
- Social media scams
- Employee-targeted scams
Looking at Account Takeover (ATO) – or Facility Takeover – fraud, which is when a criminal uses an individual’s personal information to access the victim’s bank account or financial product, Cifas reveals a sharp rise in the number of cases recorded to the National Fraud Database.
Cifas members reported over 74,000 cases of ATO fraud in 2024 (up 76% when compared to 2023), while figures for the first six months of 2025 have already reached more than 38,000 cases. The level of ATO shows how critical it is for people to keep their personal information as secure as possible.
Meanwhile, misuse of facility – where a genuine account holder uses a financial product for a fraudulent purpose – is now the second highest type of case recorded on the National Fraud Database, indicating how accounts are increasingly used for money mulling activity or house laundered funds.
Paul Weathersby, Chief Product Officer, Identity and Fraud, Experian UK&I, said: “Our work with Cifas underlines what many suspect, that UK businesses and consumers are facing an ongoing epidemic of fraud which show no signs of abating.
“Fortunately, businesses are deploying increasingly sophisticated technology to identify and prevent fraud. By deploying a multi-layered approach incorporating biometric and behavioural technology organisations can ensure their defences are fit-for-purpose.”.
Mike Haley, Chief Executive, Cifas, said: “Fraud doesn’t take a holiday – in fact, the festive season often fuels it. As we unwrap Christmas fraud, increased spending, stretched resources, and seasonal staffing can create the perfect storm for criminals to exploit vulnerabilities at scale and commit a range of crimes – from identity fraud to account takeover.
“Fraud may be evolving, but so is our response. We are helping organisations to reinforce internal controls, training workforces to spot and report fraud, and deploying robust prevention tools. And just like the spirit of the season, sharing is our gift to businesses and their consumers – by sharing data and intelligence across sectors, we can close the gap and keep fraud firmly off the festive menu.”
To read the Experian and Cifas report, visit ‘Unwrapping fraud: helping you to prepare for the festive season’.
Experian is a market leader in fraud prevention technology and has prevented more than £10.7bn in fraudulent applications over the last five years. As the UK’s leading fraud prevention service, Cifas, helped its near-800 members prevent £2.1bn in fraud losses in 2024. Companies in this story: Experian
People in this story: Paul Weathersby